IP Telephony News Wrap-up for Mar, 25 1999

Global Crossing to Merge With Frontier Communications

Frontier Communications, a U.S.-based ISP, has announced that it will merge
with Global Crossing, owner and operator of a global fiber optic network.
The all stock transaction is valued at approximately $11.2 billion. The
merger will create a company that owns and operates a 71,000 route mile
IP-based fiber optic network, with plans to deploy additional fiber to
expand the network’s coverage to over 1 million route miles, passing 159
major cities in 20 countries. The companies will offer Internet, data,
local and long distance telephone and conferencing services.

According to the terms of the agreement, each Frontier share will be
converted into roughly $62 of Global common stock. The transaction has been
approved by each company’s BOD, but is still subject to Hart-Scott-Rodino
approval, the majority vote of company shareholders as well as other
customary conditions such as regulatory approvals. The deal is intended to
qualify as a tax-free reorganization, and is expected to be finalized by fall.

The companies currently have a combined market value of nearly $30 billion,
with combined annual sales in excess of $4 billion.

Global Crossing

Frontier Communications

Multimedia Research Releases ISP Growth Potential Report

Multimedia Research Group (MRG) has just released a report entitled,
Internet Service Providers – Analysis of Business Expansion, Growth
Opportunities and Profitability. The report highlights short-term
opportunities and growth areas for international and U.S. based ISPs and
telcos. It also offers an analysis of the ISP industry including a summary
of revenues vs. company size, and detailed information regarding future
growth potential related to offering services such as VoIP, Internet video,
QoS, high-speed networking and information management.

The 315 page report is priced at US$2,495. It is available in Japanese and
English versions.

Multimedia Research Group

Internet Service Providers – Analysis of Business Expansion, Growth
Opportunities and Profitability

AT&T to Trial Lucent’s VoIP Technologies

AT&T has announced that it is planning to trial Lucent’s AnyMedia
MultiService switching module, a technology that enables the Lucent 5ESS
switches that are deployed throughout AT&T’s long distance network to
transmit voice over IP networks. The initial trial will link AT&T’s New
Jersey office locations in Bedminster, Middletown and Holmdel. The trial is
expected to begin this summer.



Korea Telecom Joins ITXC’s VoIP Interconnectivity Program

ITXC has announced that Korea Telecom has joined its WWeXchange IP
telephony interconnectivity affiliate program. The WWeXchange program will
enable Korea Telecom’s IP telephony service users to place calls to any
telephone in the world via ITXC’s other affiliate members or the PSTN. As
an ITXC affiliate, Korea Telecom will also terminate inbound calls
originated from the other affiliates.

Korea Telecom’s service is based on Lucent’s equipment.

Korea Telecom


OzEmail Launches PC to Phone VoIP Trial

OzEmail Limited has announced that it has launched a trial PC to phone
Internet telephony service based on its own recently developed software.
The service, dubbed OzEmail PC-Phone, enables the company’s Internet access
subscribers to place calls from a PC to any phone in the world.


Glocalnet to Implement Cisco’s Equipment in Existing VoIP Network

Glocalnet has announced that it is planning to implement Cisco’s Internet
telephony end-to-end solution over its existing Internet telephony network.
Cisco’s IP telephony solution includes VoIP and VPN capabilities as well as
an array of other IP-based value added services. The three year deal has a
multi million dollar price tag.



Interphase Launches VoIP Subsidiary, QuesCom

Interphase, an international supplier of enterprise networking
technologies, has announced that it has formed a subsidiary, QuesCom, to
focus on the development of IP telephony networking technologies. QuesCom
will develop products that will enhance existing PBXs by adding features
including RAS, Unified Messaging and LCR capabilities. The subsidiary is
also currently developing V/FoIP IP gateway products.



ICG to Resell GRIC’s VoIP Solutions in Europe

ICG Interconnect, a European VAR, has announced that it will sell, install
and support GRIC’s Internet telephony prepaid calling card system,
GRICprepaid. The system is a Java-based software application that enables
providers to offer Internet telephony services and bill customers for
placing prepaid calls over the Internet. It ships with the latest version
of Lucent’s PacketStar Internet Telephony gateway and web-based
applications to perform real-time authentication, rating, voice response,
call termination, and accounting and tariff table management.

GRICprepaid is currently available for UNIX and Windows NT platforms. It is
priced at $25,000.

ICG Interconnect



Fax2Net Teams With Philips to Develop Internet-Ready Fax Machine

Fax2Net announced that it is teaming with Philips Business Unit to develop
an Internet-ready fax machine based on Philips’ Magic plain paper fax
product. The unit is expected to enable users to send/receive faxes via
email accounts.



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